What is BNB binance coin

Binance Coin (BNB) powers the Binance ecosystem and is the native token of Binance Chain and Binance Smart Chain. BNB has the following uses:

  • Pay transaction fees on Binance;
  • Pay transaction fees on Binance DEX (Decentralized Exchange);
  • Pay transaction fees on Binance Chain;
  • Pay transaction fees on Binance Smart Chain;
  • Pay for goods and services purchased online and in-store (such as with Binance Card or Binance Pay);
  • Booking hotels and flights, etc. through Travala.com;
  • Community utility tokens for the Binance Smart Chain ecosystem (e.g. games and DApps);
  • Participate in token sales hosted by Binance Launchpad;
  • Donate to Binance Charity;
  • Inject liquidity into Binance Liquidity Mining.

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What is Binance Coin (BNB)?

BNB was launched through an Initial Coin Offering (“ICO”) event held from June 26 to July 3, 2017. 11 days later, the Binance trading platform officially opened for trading. Its initial launch price is 1 Ethereum and 1 Bitcoin can be exchanged for 2,700 Binance Coins and 20,000 Binance Coins, respectively. Although BNB is issued through ICO, the holders of BNB are neither shareholders of Binance nor investors of Binance.

The initial issuance of BNB is an ERC-20 token circulating in the Ethereum network with a total supply of 200 million. The ICO campaign issued a total of 100 million BNB, but after several regular burns (Binance burns BNB stored in its own vaults), the total supply has declined. To learn more about the token burn plan and the reasons for permanently burning BNB, please read What is Token Burn? “.

Although based on the Ethereum network at the beginning, later, ERC-20 BNB tokens have been able to exchange BEP-2 BNB at a 1:1 exchange rate. BEP-2 BNB is the native token of Binance Chain, and its mainnet was officially launched on April 18, 2019.

In September 2020, Binance launched Binance Smart Chain (BSC), a blockchain network that operates in parallel with Binance Chain. This means that there are currently three different forms of BNB:

  • BEP-2 BNB in ​​Binance Chain.
  • BEP-20 BNB in ​​Binance Smart Chain.
  • ERC-20 BNB in ​​the Ethereum network.

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What is Binance Coin used for?

As mentioned earlier, BNB is widely used in the Binance ecosystem and other environments, so users have the flexibility to decide how to use their BNB. For example, you can use BNB to pay for travel, buy virtual gifts, and more. By our estimates, millions of BNB are already being used by users to pay for travel, buy goods, borrow, reward, create smart contracts and other transactions.

Also, there are many people who use BNB to pay transaction fees. In trading platforms alone, 2 million users paid transaction fees in BNB for more than 127 billion transactions, totaling more than 40 million BNB. Let’s take a look at how to pay transaction fees through BNB.

When trading digital currencies on Binance, a standard fee of 0.1% will be charged per transaction ( transaction fees depend on monthly volume and BNB holdings). Traders can use the asset being traded or BNB to pay for the transaction. Choose to pay with BNB and enjoy special discounts.

Therefore, if you are doing large-scale transactions on Binance, you should consider acquiring BNB and using it to pay your fees. Please note that the deduction of transaction fees follows a specific fee schedule. Therefore, it is imperative to review the current fee schedule for spot trading. It’s also worth noting that Binance Futures follows a slightly different fee schedule.

In addition to discounted transaction fees, BNB also powers the Binance DEX (which sits on top of the Binance Chain) and hundreds of applications running on the Binance Smart Chain (BSC), meaning BNB can also be used on Binance Scenarios outside the trading platform. In fact, there are more than 180 digital assets issued by Binance Smart Chain (BSC), and millions of users have already consumed BNB in ​​practical scenarios related to BSC.

Buy BNB on Binance

Where can I get Binance Coin (BNB)?

Most BNB purchases take place in the secondary market. Therefore, you can buy and sell BNB through Binance and other digital currency platforms.

Go to Binance Official Website